State media criticizes 'Buy American' provisions

The state-run Xinhua news agency sharply criticized measures in the US government's stimulus package requiring the purchase of US-made materials and products, Reuters reported. "History and economic theory show that in facing a financial crisis, trade protectionism is not a way out, but rather could become just the poison that worsens global economic hardships," said the Xinhua editorial. The "Buy American" provisions of the US government's US$787 billion stimulus plan require public works projects funded by the stimulus to use only US-made goods, including commodities like iron and steel. "Trade protectionism will also cause catastrophic effects to some poor countries, making the current financial crisis one of a humanitarian crisis as well," Xinhua said.